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MOUNTAIN VIEW, Calif. (AP) — Google's corporate parent on Monday
announced an agreement to buy data center energy specialist
Intersect for $4.75 billion as part of its effort to secure the
vast amounts of electricity needed to power artificial
intelligence technology.
Alphabet, which depends on Google's search engine and other
online services for most of its revenue, is buying out Intersect
in its entirety after purchasing a stake in the San
Francisco-based startup a year ago. Intersect had previously
raised $2.1 billion from Google and other early investors.
After the acquisition is completed during the first half of next
year, Alphabet intends to allow Intersect to operate
independently while continuing its efforts to secure the energy
sources needed for the sprawling data centers being built to
power the AI services rolling out from Google and rivals such as
OpenAI.
The power-hungry data centers, which are being likened to AI
factories, is fueling a backlash in communities where residents
have been interpreting their steadily rising electricity bills
as evidence that they help helping footing the boom for a
technology boom that could still go bust.
Intersect focuses on finding ways to increase and diversify the
supply of energy in an effort to keep hold down power costs.
It's already working on a data center for Mountain View,
California-based Alphabet in Haskell County, Texas.
Google's inroads with AI has helped increase Alphabet's stock
price by more than 60% so far this year, generating an
additional $1.4 trillion in shareholder wealth.
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